What is SuperStream?
To reduce the amount of time, effort and cost of the Superannuation system, the Government established SuperStream, a new system that allows employers to make electronic superannuation contributions for their employees.
Employers that have 19 or fewer employees will begin making contributions starting 1 July, 2015 and are given 12 months to make the change.
Who does SuperStream apply to?
For all employers making super contributions, APRA-regulated funds, and SMSFs receiving contributions, SuperStream is required.
This will not affect your SMSF (Self Managed Superannuation Fund) if it:
- does not receive any employer contributions
- only receives personal contributions made by members
- only receives contributions from related-party employers
What does an employer need to do?
Due to the fact that each business is different, here are a few options in meeting SuperStream requirements:
- upgrading your payroll software
- using a commercial clearing house or
- using the free Small Business Superannuation Clearing House (for employers with 19 or fewer employees)
The SBSCH is under the administration of the Australian Taxation Office and is a service that allows employers to make their contributions as a single electronic payment to the clearing house, which then distributes the payment to employees’ funds.
What additional information does an employer need to gather to make contributions using SuperStream?
The following information is needed for electronic processing of contributions using the SuperStream standard. Employers must include these in their payroll file:
- unique superannuation identifier (USI) for APRA-regulated funds
- ABN for SMSF funds
- bank account details
- electronic service address
What if an employer hasn’t got all the SMSF details they need?
If an employer does not receive the SMSF’s details by the date required, they will not be able to send contributions to the employee’s SMSF fund. They may ask the employee to complete a standard choice form and return this form to them within 28 days.
You need an electronic service address
Since payments are processed electronically, an electronic service address is needed by the employer to ensure that electronic contributions messages are received. This can be obtained from an SMSF messaging provider. A list of SMSF messaging providers can be found on ATO website. Please click this link.
Do you need to register with an SMSF messaging provider?
Yes, if your SMSF does not have access to an electronic service address through an existing service provider.
To do this, you will need to give these details to the provider:
- name of SMSF
- ABN of SMSF
- contact details of SMSF trustee.
You may have to pay a small fee to the SMSF message provider. In return, the SMSF messaging provider will:
- give you an electronic service address (alias)
- receive employer contributions messages your employer sends to your SMSF using the SuperStream standard
send the employer contributions messages to you.
Once you have the alias, you will need to give this information to your employer. Your employer will then include this information in their payroll file to identify where they will send your contribution messages.